SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 17103 / August 16, 2001

COMMISSION FILES SETTLED INSIDER TRADING ACTION AGAINST JAMES A. ANDERSON

SECURITIES AND EXCHANGE COMMISSION V. JAMES A. ANDERSON, Civil Action No. 01-CV-1992 (N.D.Ga).

The Securities and Exchange Commission announced that the Honorable Judge Richard W. Story, United States District Judge for the Northern District of Georgia, has issued a Final Judgment of Permanent Injunction and Other Relief against James A. Anderson, a resident of Dahlonega, Georgia. The final judgment permanently enjoins Anderson from further violations of the antifraud provisions of the Securities Exchange Act of 1934 and orders him to disgorge ill-gotten gains in the amount of $14,148.16, to pay prejudgment interest, and to pay a civil penalty of $14,148.16.

The Commission's complaint alleges that on or about November 29, 2000 and December 1, 2000, Anderson misappropriated confidential information regarding Century South Bank, Inc.'s ongoing merger negotiations with BB&T Corporation from an individual, who, at the time, was an officer of Century South. The complaint further alleges that on November 29, 2000, Anderson purchased 400 shares of Century South stock at $21.72 per share based upon this misappropriated information. Later on that same date, Anderson purchased an additional 450 shares of Century South stock at $21.75 per share. On December 1, 2000, Anderson purchased another 1,000 shares of Century South stock at $21.95. On December 5, 2000, after the announcement of the acquisition, Anderson sold all 1,850 shares of Century South stock in his portfolio at $29.50 per share, resulting in a realized a profit of $14,148.16.

Without admitting or denying the Commission's allegations, Anderson consented to the entry of a final judgment that permanently enjoins him from violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. In addition, Anderson agreed to disgorge $14,148.16, to pay prejudgment interest of $106.11, and to pay a civil penalty of $14,148.16.